Daily Insurance Industry News
 
 
Daily Insurance Industry News
Tuesday 21st of November 2017
February 28, 2011

PPI dominates as FOS reports 15% rise in new cases

by Gill Montia

Story link: PPI dominates as FOS reports 15% rise in new cases

The Financial Ombudsman Service (FOS) recorded a 15% increase in new complaints in the second half of 2010, compared with the previous six-month period.

Complaints involving payment protection insurance (PPI) accounted for over half of the new workload, with 24,955 such cases lodged in the final quarter of 2010 alone.

The Service received a total of 97,237 new complaints between 1st July and 31st December, with 91% relating to 162 financial businesses and five firms accounting for 54,078 new cases.

However, making sense of the data in terms of individual firms’ performances is difficult, as the number of new complaints against each company is likely to be affected by the size of the business and experts are unable to agree how market share should be taken into account.

Figures published today also show that in the second half of 2010, the FOS upheld an average of 53% of complaints in favour of consumers, compared to 44% in the first half of the year.

Across the 162 firms with the most new complaints, uphold rates varied between 5% and 95%.

Last week, Lloyds Banking Group reported a sharp rise in complaints about PPI sales, with cases more than doubling to 148,300 in the second half of 2010.

The bank said that the majority came from claims-handling firms using template letters.

 

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